EU Carbon Prices Hover at 6-Month High
2026-07-23 09:15
By
Agna Gabriel
1 min. read
EU carbon permit prices topped €85 per tonne, the highest since January, supported by higher energy prices and heightened geopolitical tensions, while the European Commission unveiled a major overhaul of the EU Emissions Trading System (ETS) aimed at balancing climate ambition with industrial competitiveness.
The proposal would slow the annual reduction in the emissions cap to 3.7% during 2031–2035 and 1.7% from 2036, while extending free carbon allowances until 2037 for companies that invest in decarbonization projects in Europe.
Companies would, however, need to invest in decarbonization projects within Europe to qualify for those allowances.
The reforms also include changes to the Market Stability Reserve, limited use of international carbon credits, broader ETS coverage for aviation and shipping, and a recommendation that member states allocate half of ETS revenues to clean-energy investments.